I have the same problem. I cannot print on the Statement paper size. The printed text appears at the far left margin if 8.5x11 paper is inserted instead of Statement-size paper. A second page is printed with the error message, “PCL XL error. Warning: Illegal Media Size.”
I am running Window7 using the just-released HP Universal Print Driver, upd-pcl6-5.8.0.17508.exe, and printing to an HP Laserjet 1200 printer.
I believe this is a driver problem. I can create and print to custom sizes, 3x5 inches and 8.5x3.67 inches. I can create a 5.5x8.5-inch form size under a different name, but if I try to print to it, I get the same illegal-size error. However, if I create a 5.5x8.6-inch form size, I have no problem.